Acquisition Plan Review Considerations for Small Business Professionals

Note: In accordance with Federal Acquisition Regulation (FAR) 7.105, the specific content of acquisition plans will vary depending on the nature, circumstances, and stage of the acquisition. In preparing the plan, the planner must follow the applicable instructions together with the agency’s implementation procedures. This checklist only uses the contents of the acquisition plan as outlined in FAR 7.105. However, be mindful of acquisition plan guidance of Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and Instructions (PGI) 207.105.

Contents of Plan (FAR 7.105) Small Business Strategy Considerations

Notes/Commentson Small Business Subcontracting

Acquisition Background and Objectives(1) Statement of need. Introduce the plan by a

brief statement of need. Summarize the technical and contractual history of the acquisition. Discuss feasible acquisition alternatives, the impact of prior acquisitions on those alternatives, and any related in-house effort.

If feasible acquisition alternatives are discussed, are small business considerations discussed in those alternatives? (See FAR 19.202-1 - Small business concerns shall be afforded an equitable opportunity to compete for all contracts that they can perform to the extent consistent with Government interest)

(2) Applicable conditions. State all significant conditions affecting the acquisition, such as --

(i) Requirements for compatibility with existing or future systems or programs and

(ii) Any known cost, schedule, and capability or performance constraints.

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Contents of Plan (FAR 7.105) Small Business Strategy Considerations

Notes/Commentson Small Business Subcontracting

(3) Cost. Set forth the established cost goals for the acquisition and the rationale supporting them, and discuss related cost concepts to be employed, including, as appropriate, the following items:

(i) Life-cycle cost. Discuss how life-cycle cost will be considered. If it is not used, explain why. If appropriate, discuss the cost model used to develop life-cycle-cost estimates.

(ii) Design-to-cost. Describe the design-to-cost objective(s) and underlying assumptions, including the rationale for quantity, learning-curve, and economic adjustment factors. Describe how objectives are to be applied, tracked, and enforced. Indicate specific related solicitation and contractual requirements to be imposed.

(iii) Application of should-cost. Describe the application of should-cost analysis to the acquisition (see 15.407-4).

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Contents of Plan (FAR 7.105) Small Business Strategy Considerations

Notes/Commentson Small Business Subcontracting

(4) Capability or performance. Specify the required capabilities or performance characteristics of the supplies or the performance standards of the services being acquired and state how they are related to the need.

Can the acquisition of supplies and services, (except construction) be divided into reasonably small lots (not less than economic production runs) per permit offers on quantities less than the total requirements (FAR 19.202-1(a)? If practicable, can more than one small business concern perform the work, if the work exceeds the amount for which a surety may be guaranteed by SBA against loss under 15 U.SC 694(b) (FAR 19.202-1(b))?

(5) Delivery or performance-period requirements. Describe the basis for establishing delivery or performance-period requirements (see Subpart 11.4) (this link is accessible for the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/11.htm#P160_25175). Explain and provide reasons for any urgency if it results in concurrency of development and production or constitutes justification for not providing for full and open competition.

Has the delivery schedules been established on a realistic basis that will encourage small business participation to extent consistent with the actual requirements of the Government (FAR 19.201-1(b))?

(6) Trade-offs. Discuss the expected consequences of trade-offs among the various cost, capability or performance, and schedule goals.

(7) Risks. Discuss technical, cost, and schedule risks and describe what efforts are planned or underway to reduce risk and the consequences of failure to achieve goals. If concurrency of development and production is planned, discuss its effects on cost and schedule risks.

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Contents of Plan (FAR 7.105) Small Business Strategy Considerations

Notes/Commentson Small Business Subcontracting

(8) Acquisition streamlining.  If specifically designated by the requiring agency as a program subject to acquisition streamlining, discuss plans and procedures to --(i) Encourage industry participation by using

draft solicitations, pre-solicitation conferences, and other means of stimulating industry involvement during design and development in recommending the most appropriate application and tailoring of contract requirements;

(ii) Select and tailor only the necessary and cost-effective requirements; and

Has small business been encouraged to participate in responding to draft solicitations, pre-solicitation conferences, etc.? (FAR 19.202-1 – small business concerns shall be afforded an equitable opportunity to compete for all contracts that they can perform to the extent consistent with the Government’s interest.)

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(iii) State the timeframe for identifying which of those specifications and standards, originally provided for guidance only, shall become mandatory.

Plan of Action(1) Sources.  Indicate the prospective sources

of supplies or services that can meet the need. Consider required sources of supplies or services (see Part 8 , this link is also accessible through the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/08.htm#TopOfPage) and sources identifiable through databases including the Government-wide database of contracts and other procurements instruments intended for use by multiple agencies. This link is also accessible through the following URL: https://www.contractdirectory.gov/contractdirectory/).

Include consideration of small business, veteran-owned small businesses, HUBZone small business, small disadvantaged business, and women-owned small business concerns (See FAR 19) and the impact of any bundling that might affect their participation in the acquisition (see 7.107) When the proposed acquisition strategy involves bundling, identify the incumbent contractors and contracts affected by the bundling. Address the extent and results of the market research and indicate their impact on the various elements of the plan (see Part 10)

Does the plan include consideration of small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns (see Part 19), and the impact of any bundling that might affect their participation in the acquisition (see 7.107) (15 U.S.C. 644(e)).

When the proposed acquisition strategy involves bundling, identify the incumbent contractors and contracts affected by the bundling.

Has adequate market research been conducted in accordance with the procedures outlined in FAR Part 10.002 depending on the urgency, estimated dollar value, complexity and past experience?

Has Market Research been conducted IAW DFARS 210.001 (a0(ii)(B) to determine whether the criteria in FAR Part 19 are met for setting aside the acquisition for small business or whether there are sufficient number of qualified small business firms available to justify limiting competition under the terms of the contract?

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(2) Competition.(i) Describe how competition will be sought,

promoted, and sustained throughout the course of the acquisition. If full and open competition is not contemplated, cite the authority in 6.302, discuss the basis for the application of that authority, identify the source(s), and discuss why full and open competition cannot be obtained (this link is also accessible through the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/06.htm#P83_11341).

(ii) Identify the major components or subsystems. Discuss component breakout plans relative to these major components or subsystems. Describe how competition will be sought, promoted, and sustained for these components or subsystems.

(iii) Describe how competition will be sought, promoted, and sustained for spares and repair parts. Identify the key logistic milestones, such as technical data delivery schedules and acquisition method coding conferences, that affect competition.

(iv)When effective subcontract competition is both feasible and desirable, describe how such subcontract competition will be sought, promoted, and sustained throughout the course of the acquisition. Identify any known barriers to increasing subcontract competition and address how to overcome them.

Will the acquisition be considered for a small business set-aside under FAR Part 6.2 Full and Open completion after exclusion of sources, for a small business, 8(a), HUBZones, Service-Disabled Veteran Owned Small Business, or Economically Disadvantaged Women Owned Small Business or Women Owned Small Business concerns eligible under the Women-Owned Small Business Programs (or a sole-source for one of these programs under FAR 6.302-5)?

To promote competition for small business, can the acquisition of supplies and services, (except construction) be divided into reasonably small lots (not less than economic production runs) per permit offers on quantities less than the total requirements (FAR 19.202-1(a)?

If practicable, can more than one small business concern perform the work, if the work exceed the amount for which a surety may be guaranteed by SBA against loss under 15 U.SC 694(b) (FAR 19.202-1(b))?

Are the statutory requirements of FAR 19.702 included in subcontracting strategy? Are prime contractors encouraged to subcontract with small businesses (FAR part 19.7)?

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(3)  Contract type selection. Discuss the rationale for the selection of contract type. For other than firm-fixed-price contracts, see 16.103(d) for additional documentation guidance. Acquisition personnel shall document the acquisition plan with findings that detail the particular facts and circumstances, (e.g., complexity of the requirements, uncertain duration of the work, contractor’s technical capability and financial responsibility, or adequacy of the contractor’s accounting system), and associated reasoning essential to support the contract type selection (this link is also accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/16.htm#P20_3412). The Contracting Officer shall ensure that requirements and technical personnel provide the necessary documentation to support the contract type selection.

(4) Source-selection procedures. Discuss the source-selection procedures for the acquisition, including the timing for submission and evaluation of proposals, and the relationship of evaluation factors to the attainment of the acquisition objectives (see FAR Subpart 15.3)(this link is also accessible at the following UR:L: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/15.htm#P223_35945). When an EVMS is required (see FAR 34.202(a)) (this link is also accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/34.htm#P70_11365) and a pre-award IBR is contemplated, the acquisition plan must discuss-

(i) How the pre-award IBR will be considered in the source-selection decision;

(ii) How it will be conducted in the source-selection process (see FAR 15.306) (this link is also accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/15.htm#P288_46093); and

(iii) Whether offerors will be directly compensated for the costs of participating in a pre-award IBR.

Are the requirements for evaluating small business participation at FAR 15.304(b)((3)(ii) DFARS 215.304(c)(i) and DFARS 215.305(a)(2) included?

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(5) Acquisition considerations.(i) For each contract contemplated, discuss

use of multiyear contracting, options, or other special contracting methods (see Part 17) (this link is accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/17.htm#TopOfPage) ; any special clauses, special solicitation provisions, or FAR deviations required (see Subpart 1.4) (this link is accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/01.htm#P1454_38435); whether sealed bidding or negotiation will be used and why; whether equipment will be acquired by lease or purchase (see Subpart 7.4) and why; and any other contracting considerations (this link is also accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/07).htm#P215_42002). Provide rationale if a performance-based acquisition will not be used or if a performance-based acquisition for services is contemplated on other than a firm-fixed-price basis (see 37.102(a) (this link is also accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/37.htm#P21_3581) , 16.103(d) (this link is also accessible at the following URL:: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/16.htm#P20_3412), and 16.505(a)(3)) (this link is also accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/16.htm#P464_78690).

(ii)For each order contemplated, discuss—(A) For information technology

acquisitions, how the capital planning and investment control requirements of 40 U.S.C. 11312 and OMB Circular A-130 will be met (see 7.103(v) (this link is also accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/07.htm#P24_3010) and Part 39) (this link is also accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/39.htm#TopOfPage) and

(B) Why this action benefits the Government, such as when—

(1) The agency can accomplish its mission more efficiently and effectively (e.g.,

Has the statutory requirement at FAR 16.505 (b)(v) (B)(2)(F) that the Contracting Officer may set aside orders for small business concerns identified in FAR 19.0003 been considered in the acquisition plan if there are orders under an indefinite delivery order contract?

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(2) Ordering through an indefinite delivery contract facilitates access to small disadvantaged business concerns, 8(a) contractors, women-owned small business concerns, HUBZone small business concerns, veteran-owned small business concerns, or service-disabled veteran-owned small business concerns.

(iii) For information technology acquisitions using Internet Protocol, discuss whether the requirements documents include the Internet Protocol compliance requirements specified in 11.002(g) or a waiver of these requirements has been granted by the agency’s Chief Information Officer.

(iv) For each contract (and order) contemplated, discuss the strategy to transition to firm-fixed-price contracts to the maximum extent practicable. During the requirements development stage, consider structuring the contract requirements, e.g., contract line items (CLINS), in a manner that will permit some, if not all, of the requirements to be awarded on a firm-fixed-price basis, either in the current contract, future option years, or follow-on contracts. This will facilitate an easier transition to a firm-fixed-price contract because a cost history will be developed for a recurring definitive requirement.

(6) Budgeting and funding.  Include budget estimates, explain how they were derived, and discuss the schedule for obtaining adequate funds at the time they are required (see Subpart 32.7) (this link can also be accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/32.htm#P1074_166425) .

(7) Product or service descriptions. Explain the choice of product or service description types (including performance-based acquisition descriptions) to be used in the acquisition.

(8) Priorities, allocations, and allotments. When urgency of the requirement dictates a particularly short delivery or performance schedule, certain priorities may apply. If so, specify the method for obtaining and using priorities, allocations, and allotments, and the reasons for them (see Subpart 11.6) (this link is also accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/11.htm#P225_36886) .

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(9)  Contractor versus Government performance. Address the consideration given to OMB Circular No. A-76 (see Subpart 7.3) (this link is also accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/07.htm#P194_39656).

(10)  Inherently governmental functions. Address the consideration given to Subpart 7.5 (this link is also accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/07.htm#P254_45475).

(11)  Management information requirements. Discuss, as appropriate, what management system will be used by the Government to monitor the contractor’s effort. If an Earned Value Management System is to be used, discuss the methodology the Government will employ to analyze and use the earned value data to assess and monitor contract performance. In addition, discuss how the offeror's/contractor's EVMS will be verified for compliance with the American National Standards Institute/Electronics Industries Alliance (ANSI/EIA) Standard-748, Earned Value Management Systems, and the timing and conduct of integrated baseline reviews (whether prior to or post-award). (See 34.202.) (this link is also accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/34.htm#P70_11365)

(12)  Make or buy. Discuss any consideration given to make-or-buy programs (see Subpart 15.407-2) (this link is also accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/15.htm#P664_137373) .

Does the make-or-buy determination facilitate participation by small business IAW FAR 19.202-1 which states “Small Business concerns shall be afforded an equitable opportunity to compete for all contracts that they can perform to the extent consistent with Government interest”?

(13) Test and evaluation. To the extent applicable, describe the test program of the contractor and the Government. Describe the test program for each major phase of a major system acquisition. If concurrency is planned, discuss the extent of testing to be accomplished before production release.

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(14) Logistics considerations. Describe—(i) The assumptions determining contractor or

agency support, both initially and over the life of the acquisition, including consideration of contractor or agency maintenance and servicing (see Subpart 7.3) (this link is also accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/07.htm#P194_39656) , support for contracts to be performed in a designated operational area or supporting a diplomatic or consular mission (see 25.301-3) (this link is also accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/25.htm#P424_39852) ; and distribution of commercial items;

(ii) The reliability, maintainability, and quality assurance requirements, including any planned use of warranties (see Part 46) (this link is also accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/46.htm#TopOfPage) ; and

(iii) The requirements for contractor data (including repurchase data) and data rights, their estimated cost, and the use to be made of the data (see Part 27) (this link is also accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/27.htm#TopOfPage)). ; and

(iv)Standardization concepts, including the necessity to designate, in accordance with agency procedures, technical equipment as “standard” so that future purchases of the equipment can be made from the same manufacturing source.

(15) Government-furnished property. Indicate any Government property to be furnished to contractors, and discuss any associated considerations, such as its availability or the schedule for its acquisition (see 45.102) (this link is also accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/45.htm#P46_7296) .

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(16)  Government-furnished information. Discuss any Government information, such as manuals, drawings, and test data, to be provided to prospective offerors and contractors. Indicate which information that requires additional controls to monitor access and distribution (e.g., technical specifications, maps, building designs, schedules, etc.), as determined by the agency, is to be posted via the enhanced controls of the GPE. (this link is also accessible at the following URL: http://www.fedbizopps.gov) (see5.102(a)). (this link is also accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/05.htm#P30_44790).

(17) Environmental and energy conservation objectives. Discuss all applicable environmental and energy conservation objectives associated with the acquisition (see Part 23), (this link is also accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/23.htm#TopOfPage) the applicability of an environmental assessment or environmental impact statement (see 40 CFR 1502), the proposed resolution of environmental issues, and any environmentally-related requirements to be included in solicitations and contracts (see 11.002 (this link is alsoa accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/11.htm#P10_397) and 11.303) (this link is also accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/11.htm#P150_23831).

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(16)  Government-furnished information. Discuss any Government information, such as manuals, drawings, and test data, to be provided to prospective offerors and contractors. Indicate which information that requires additional controls to monitor access and distribution (e.g., technical specifications, maps, building designs, schedules, etc.), as determined by the agency, is to be posted via the enhanced controls of the GPE. (this link is also accessible at the following URL: http://www.fedbizopps.gov) (see5.102(a)). (this link is also accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/05.htm#P30_44790).

(18) (Security considerations. For acquisitions dealing with classified matters, discuss how adequate security will be established, maintained, and monitored (see Subpart 4.4) (this link is also accessible at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/04.htm#P55_9379).For Information Technology acquisitions, discuss how agency information security requirements will be met. For acquisitions requiring routine contractor physical access to a federally controlled facility and/or access to a federally controlled information system, discuss how agency requirements for personal identity verification of contractors will be met (see Subpart 4.13) (this link can also be accessed at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/04.htm#P602_75517).

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(19)  Contract administration. Describe how the contract will be administered. In contracts for services, include how inspection and acceptance corresponding to the work statement’s performance criteria will be enforced.

(20) Other considerations. Discuss, as applicable:

(i) Standardization concepts;(ii) The industrial readiness program;(iii) The Defense Production Act;(iv) The Occupational Safety and Health Act;(v) Support Anti-terrorism by Fostering

Effective Technologies Act of 2002 (SAFETY Act) (see Subpart 50.2) (this link can also be accessed at the following URL: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/50.htm#P203_33222);

(vi) Foreign sales implications;(vii) Special requirements for contracts to be

performed in a designated operational area or supporting a diplomatic or consular mission; and

(viii) (viii) Any other matters germane to the plan not covered elsewhere.

(21) Milestones for the acquisition cycle. Address the following steps and any others appropriate:Acquisition plan approvalStatement of workSpecificationsData requirementsCompletion of acquisition-package preparation.Purchase requestJustification and approval for other than full and open competition where applicable and/or any required D and F approvalIssuance of synopsisIssuance of solicitationEvaluation of proposals, audits, and field reportsBeginning and completion of negotiationsContract preparation, review, and clearance.Contract award

(22)   Identification of participants in acquisition plan preparation. List the individuals who participated in preparing the acquisition plan, giving contact information for each.

Are Small Business Professionals included in the list?

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